Market Guide for Digital-Business-Ready POS …retailinfo.com.ng/wp-content/uploads/2017/08/Cegid...G00302597 Market Guide for Digital-Business-Ready POS Applications for Tier 2 Midsize

G00302597

Market Guide for Digital-Business-Ready POSApplications for Tier 2 Midsize MultichannelRetailersPublished: 22 August 2016

Analyst(s): Miriam Burt, Joanne Joliet

In the next two to five years, retail CIOs must implement a digital-business-ready point of sale in the context of a digital business strategy that focuseson enhancing customers' lifestyles.

Key Findings■ Application architecture development has significantly shifted point of sale (POS) from mainly e-

commerce and m-commerce capabilities to deployment on "unified" commerce platforms,including in-store capability.

■ Synthesis between the order management system (OMS) and POS is fundamental to deliveringon the customer promise to be able to "buy anywhere, fulfill anywhere and return anywhere."

■ Mobile POS-only solutions are trending toward moving to full-service POS capabilities.

■ A digital-business-ready POS must be prepared and optimized for the convergence of cloud,mobile, social and emerging Internet of Things (IoT) capabilities to service customers' lifestyles.

■ Retailers find propensity to collaborate and trustworthiness especially important vendorattributes when it comes to selection of a digital business ecosystem partner.

Recommendations■ Evaluate the application architecture of the POS solutions in this Market Guide for centralized

services on a unified commerce platform to deliver multichannel capabilities.

■ Conduct comprehensive process mapping to identify all the interaction points between POSand order management (OM) in order to maximize the efficiency of fulfillment.

■ Deploy POS on mobile devices to include transactional services, as well as services to supportcustomer engagement.

■ Facilitate a workshop, as part of the digital business transformation roadmap, to gather the"must-have" digital-business-ready POS requirements for the convergence of cloud, mobile,social and IoT.

■ Guide the team to evaluate the trustworthiness of vendors — when selecting POS — usingmeasures such as their approach to security, their willingness to collaborate, the support andservices they offer, their compatibility with your business culture, and their dependability andreputation in the marketplace.

Market DefinitionThe market for POS applications for this Market Guide consists of Tier 2/midsize multichannelretailers that conduct business in any geography, operating brick-and-mortar stores as one of manyoperating channels. They generate annual retail revenue of between $500 million and $2.99 billion.

These retailers do not have the resources or the economies of scale of the Tier 1/large multichannelretailers (those retailers with annual retail revenue of at least $3 billion). More than ever, to competewith the Tier 1/large retailers and with others in their own tier, they must rely on a customer offeringcharacterized by something different from what the bigger retailers offer. They are, therefore,increasingly looking to technology to help them deliver innovative and outstanding valuepropositions for their customers. This includes, for example, cornering the market in niche products,constructing very well targeted customer offerings and offering "customized" services andexperiences as part of their overall retail offering. Tier 2/midsize retailers, especially those inemerging markets, do not have the heavy legacy infrastructures found in the larger retailers and canafford to adopt newer technologies, for example, cloud technologies, that are offered to them at acompetitive price point.

The attributes below illustrate the capabilities that Gartner considers representative of this market.Vendors in this market (regardless of size) are more likely to sell POS applications that include, forexample:

■ Some functionality for store inventory management, customer relationship management (CRM),clienteling and labor scheduling

■ Native integrations to e-commerce, and in some cases, to social media

■ Good integration with, if not being built on top of, order management

■ An SOA-based componentized and modular application architecture with "cloud first" and"mobile first" design

■ Data/analytics and reporting capabilities

■ Presence and implementations in fewer countries/geographical regions than the larger vendors,as there is more room for growth in domestic and local markets

■ Implementation more in nonfood than food retailers

Page 2 of 35 Gartner, Inc. | G00302597

Vendors in this market are also more likely to have country-specific or regional, rather than global,presence. Vendor solutions and implementations can cover the categories seen in Table 1:

Table 1. Segments Covered in This Market Guide

Grocery Department stores Office supply

General merchandise Convenience Appliances

Home improvement Warehouse Electronics

Drug Specialty Sporting goods

Discount Books Computers

Apparel and footwear Music and video

Source: Gartner (August 2016)

Please note that the research for this Market Guide does not cover POS solutions for the segmentsseen in Table 2:

Table 2. Segments Not Covered in This Market Guide

Hospitality Leisure Quick-service restaurants/commissaries

Theme parks Gaming Entertainment complexes

Travel and transport Duty-free shops Fuel forecourt operators/service stations


The research also does not include POS hardware, POS client operating systems or POSperipherals.

Note that Gartner also published a Market Guide for POS applications for the large Tier 1 retailmarket in 2016 (see "Market Guide for Digital-Business-Ready POS Applications for Tier 1Multichannel Retailers").

Market DirectionThe market for POS applications for Tier 2/midsize multichannel retailers has focused on variousleading strengths over the past three to five years. While some were already implemented in Tier 2/midsize multichannel retailers through either their ERP or POS solutions, many started by servicingthe small or midsize business (SMB) pure-play online retailers. Yet others entered this marketthrough their mobile-commerce-only offerings, extending into the full POS capabilities.

Gartner, Inc. | G00302597 Page 3 of 35

Moreover, over the past 24 months, these vendors have leveraged their native componentized andservices-oriented applications architectures for nonstore interactions to include in-store POScapability. This has been done through development of unified commerce platforms for B2C and, insome cases, for B2B interactions.

The vendors in this market, for the most part, have a heritage in digital solutions and can nativelycope with e-commerce and m-commerce interactions, including clienteling. On the whole, theyhave been more innovative than their larger counterparts in the digital world, for example, throughoffering native integration to social media such as Facebook stores, buyable Pinterest items andenablement of "buy" buttons on Twitter. In this regard, they are well on the road to demonstratingthat they are digital-business-ready and can support the digital business technologies of cloud,mobile and social. Now POS will also have to show that it can integrate easily with the IoT,particularly in the store.

The past 18 months have also seen a fair amount of consolidation activity:

■ In 2014, Manhattan Associates acquired the assets of Global Bay Technologies for mobile-enabled POS and clienteling.

■ 2015 saw the acquisition of Tomax by Demandware (which, on 1 June 2016, announced that ithad entered into an agreement to be acquired by Salesforce), as well as the spin-off of Aptos'dedicated retail solutions division from Epicor Software.

The Tier 2/multichannel retail market presents a sizable growth opportunity. Gartner researchindicates that SMB IT spending will grow an average 3.8% in the next five years (see "Forecast:Small-and-Midsize-Business IT Spending, Worldwide, 2014-2020, 2Q16 Update"). There is muchflex still in local and domestic markets. The Tier 2/midsize multichannel retail market in nondomesticand emerging economies is largely untapped. There is also a noticeable trend of hitherto online-onlyretailers opening stores. Moreover, there may be opportunities for implementations in large Tier 1retailers entering new markets with a much smaller Tier 2/midsize-type multichannel footprint.

POS will have to support the merging of the online and offline assets of retailers in this market asthey move toward digital business transformation. In the coming 12 to 24 months, the vendors inthis market should be in a position to strongly demonstrate that they are up to the mark to supportsolid in-store, full POS capability in decent-sized multichannel implementations, as well as tosupport digital business requirements of cloud mobile, social, big data and the IoT.

Market AnalysisThis Market Guide looks at POS capability to service the Tier 2/midsize multichannel retailers, withrespect to application architecture and platforms — and functionality — including synthesis withOM. Security, support and services are also very important evaluation criteria; the latter two beingthe parameters that will drive the extent to which the retailer will trust the vendor.


Application Architecture and Platforms

In order to enable the retailer to respond flexibly and agilely to customer and market requirements,POS must be able to deliver existing and new functionality in a flexible and agile manner. In thisregard, we observe that SOA-based application architecture development is continuing and is nowthe common core POS application architecture.

Over the past three years, vendors have built unified commerce platforms over their componentizedand modular application architectures. For many of the vendors, this has enabled them to deliver in-store POS capabilities in addition to their native e-commerce and m-commerce digital capabilities.These platforms are commonly referred to as "enterprise commerce platforms," "unified commercesystems," "single commerce systems" or "single commerce hubs." In general, these platforms areecosystems housing traditional in-store POS with e-commerce, mobile commerce, socialcommerce, OM, and in some cases, fulfillment. Robust multichannel capability is the basis fortransformation to digital business. The merging of the offline and online assets of the retailer is afundamental requirement for this.

Functionality

POS that is digital-business-ready must be capable of delivering services to enhance customers'experiences in their lifestyle choices. This includes the capability to:

■ Handle requirements efficiently and effectively for the execution of multichannel as "business asusual." This must include:

■ Synthesis with OM to deliver "buy anywhere, fulfill anywhere, return anywhere" capability

■ Functionality to allow one view of the stock, endless aisle capabilities and centralizedreturns management

■ The capability to accept both traditional and newer types of emerging payments in andacross the channels

■ Be optimized for the convergence of cloud, mobile, social and the IoT

Trust

In the fast-moving digital business world, the ability to collaborate and trustworthiness are keyattributes that retailers will be evaluating in the ecosystem of their partners. Although "trust" per seis inclined to be more of a qualitative measure, "hard" or "semihard" criteria that suggest how gooda strategic partner the vendor will be include:

■ Security

A secure POS is critical for maintaining the trust of both the retailer and the customer.Customers must be confident that their data is being handled in a responsible manner by theretailer and that systems are proactively monitored to ensure security. Vendors mustdemonstrate that all reasonable measures have been taken regarding securing the POS


application. For example, most vendors will try to demonstrate compliance with industrysecurity standards such as PA-DSS within the PCI-DSS framework. A thorough explanation foran alternative approach must be clearly explained if they "circumvent" this regulation. Regionalregulations with data security requirements must also be adhered to, for example, securityrequirements laid out by the Single European Payment Area (SEPA). Security measures shouldalso include software-embedded security, such as encryption of personalized and transactiondata, as well as security enabled by software functionality such as fast and secure recognitionof fraud through central transaction analysis.

As retailers move to making resilience (rather than just compliance) the pillar of their risk andsecurity management strategies, POS data must be easily fed into advanced analytics solutionssuch as user and entity behavior analytics solutions to facilitate detection of data patterns topredict possible data breaches.

■ Support and Services

Another key criteria of trust is the ability of the vendor to provide timely and reliable support forthe POS application, including the ability to service global operations adequately. Solid andreliable support and services will be a critical requirement for competitive advantage in digitalbusiness. Timely completion of user change requests and resolution of problems couldaccelerate speed to market — for example, to deploy new and special joint promotions aheadof competitors with partners in businesses in other industries,. Regardless of the number ofsales channels a vendor has, for a large global retailer, having easy access to reliable and solidlycomprehensive support and services in the geographical areas of operations is critical tooptimizing the efficiency of POS.

■ Other Trust Criteria

■ Compatibility regarding how well a vendor understands market and consumer movementsin the retail industry, coupled with the specific retailer's business strategy and customerrequirements. A good fit with the culture and ethos of the business also helps to build uptrust.

■ Vendor's reputation in the marketplace, including successful implementations in retailersof similar profiles, as well as evidence of collaborative partnerships.

■ Responsiveness in terms of communication in a meaningful and timely manner.

■ Dependability regarding timely conveyance of key deliverables.

Representative VendorsThe vendors listed in this Market Guide do not imply an exhaustive list. This section is intended toprovide more understanding of the market and its offerings.

Aptos

https://aptos.com


https://aptos.com/

Atlanta, Georgia

Wholly owned by a private equity investment group called Apax Partners, Aptos — formerly EpicorRetail Solutions — was spun off from Epicor in June 2015. The company currently has 700employees. Its focus is 100% on retail, and it inherits almost a half-century of Epicor's strongpresence in the midsize nonfood retail market.

This research note focuses on the traditional POS and mobile POS solutions that Aptos includes inits "Singular Commerce" cloud-based platform, which is founded on OM. As a global vendor, thecompany has an international presence in 41 countries, and 29 country service packs are availablein the "out-of-the-box" base solution, which includes functionality for language, taxation andcurrency.

POS Application: POS and Mobile POS on Retail Store.

Current Version (2Q16): 6.4.

Programming Language/Environment: .NET.

PA-DSS Certified: Yes, Aptos Secure Data Manager.

Sweet Spot: The POS solution is implemented in Tier 2/midsize retailers with a focus on apparel,footwear, specialty, general merchandise, hard goods and sporting goods. Examples in the publicdomain: Tumi, Cole Haan, Nike, J. C. Penney, Coach, Payless, The Orvis Company, Pier 1 Imports,Nine West Holdings, Michael Kors, True Religion and others.

Key Roadmap Items in the Next 12 Months: Continued focus on internationalization, deploymentenhancements for large multibrand/multicountry retailers, mobile enhancements and sustainedinvestments in singular commerce.

Cegid

www.cegid.com

Lyon, France

Founded in 1983, Cegid is an international group with solutions for finance, tax management andhuman resources, as well as vertical business solutions such as retail, manufacturing and trade.Accounting, small companies and the public sector are also served by this vendor. With more than2,250 employees, the Cegid group operates in about 30 locations in France and has more than 15international subsidiaries across all continents.

MOBICLO, the natural convergence of mobility, business intelligence and the cloud, with "on-demand" solutions adapted to industry-specific needs, is a concept that informs Cegid's innovationstrategy. It underpins the development of Cegid's entire range.

This research note focuses on the POS capabilities available on the Yourcegid Retail Y2 platform forconnected commerce.


http://www.cegid.com/

POS Application: Yourcegid Retail Y2.

Current Version (2Q16): Yourcegid Retail Y2 Edition 2015 (Service Pack 1).

Programming Language/Environment: Mainly C#; .NET 4.5.1; + Delphi; Objective-C (MPOS);C#; .NET 4.57 (mobile clienteling).

PA-DSS Certified: No; however, no sensitive data such as credit card numbers is stored. The EFTmodules allow for integration to third-party payment service providers.

Sweet Spot: The POS solution is implemented in Tier 2/midsize nonfood retailers in categories suchas apparel, footwear, specialty, cosmetics, sporting goods and luxury. An international solution isdeployed in more than 75 countries and is localized for 60 countries. Examples in the publicdomain: Lacoste, Quiksilver, L'Occitane, Amer Sports (Arc'teryx), Furla, OL Stadium, Clarins, ASICS,Gant, New Look, Havaianas and more.

Key Roadmap Items in the Next 12 Months: SOA; new web services (i.e., inventory); new mobileinventory solution; evolution of POS for unified commerce on Windows 10; enhancements/add-onsin the areas of omnichannel loyalty programs; new strategic partnership (Adyen for payment); smartproxy; expansion of SaaS geographical scope (worldwide SaaS).

comerzzia

www.comerzzia.com

Seville, Spain

Comerzzia was created in 2009 and is part of the Tier1 Group. The vendor's sole focus is the retailindustry, with 140 employees in Western Europe and Latin America. Comerzzia is experiencing fastgrowth by using a global and regional partner network in Central and Eastern Europe, North Africaand South Africa, and the Middle East.

This research focuses on comerzzia's POS and FastPOS (mobile POS) solutions. These are part ofthe commerzia Enterprise Suite, which is a multichannel IT platform suite for retail storemanagement.

POS Application: comerzzia Omnichannel Point-Of-Sale.

Current Version (Q16): 3.1.

Programming Language/Environment: Java/JavaFX.

PA-DSS Certified: Comerzzia POS and FastPOS applications have been implemented incompliance with the PA-DSS standards, and every EFT application integrated with comerzzia isPCI-DSS certified. The solution does not store any personalized data during the payment process,so the PA-DSS certification is delegated in EFT applications.


http://www.comerzzia.com/portal/

Sweet Spot: Implemented in Tier 2/midsize retailers in grocery, general merchandise, homeimprovement, drug, discount, apparel and footwear, department stores, convenience, warehouse,specialty, books, appliances, electronics, sporting goods and computers.

Examples in the Public Domain: New Balance, Marypaz, supermercados Veritas, Scalpers, LaFavorita and more.

Key Roadmap Items in the Next 12 Months: Integration with IoT; robotics (social and workers, i.e.,dark stores or Pepper robot for social interactions with customers), sensors, and wearables or IPSTechnology; real-time and personalized promotions based on customer clusters built from socialand transactional information sources designed for loyal and anonymous customers; ownmultichannel OM system (MC OMS)

Demandware

www.demandware.com

Burlington, Massachusetts

Incorporated in 2004, Demandware is a retail technology company with 932 employees in NorthAmerica, Western Europe and Asia/Pacific. The vendor provides a cloud-based e-commerceplatform and related services for retailers and brand manufacturers. It has solutions for digitalcommerce, OM, predictive intelligence and POS, and offers two solutions built on the capabilitieswithin the Demandware Commerce Cloud — Demandware Digital and Demandware Store. Thesesolutions are delivered via a mobile-first-designed, versionless, cloud-based unified commerceplatform.

This research focuses on Demandware's POS capability, which is part of the Demandware Storesolution.

Note: On 1 June 2016, Demandware announced that it had entered into an agreement to beacquired by Salesforce. The acquisition was completed mid-July 2016.

POS Application: Demandware Store.

Current Version (2Q16): Demandware Store is versionless, cloud-based software with monthlyupdates.

Programming Language/Environment: Several technologies were used to build the DemandwareStore and Digital Store Solution, including Java, JavaScript and Swift.

PA-DSS Certified: Demandware Store — out of scope.

Sweet Spot: The POS solution is to be found in Tier 2/midsize retailers in fashion, footwear, healthand beauty, outdoor and sporting, as well as specialty. Examples in the public domain: Timbuk2 andvineyard vines.


http://www.demandware.com/

Key Roadmap Items in the Next 12 Months: Generally available in North America; addingadditional unified commerce experiences, and Demandware Commerce Cloud extensibility layer;Digital Store Solution — localization for Japanese, Chinese, German and French; click and collect;predictive intelligence — predictive recommendations; gift registry; multiship.

Manhattan Associates

www.manh.com

Atlanta, Georgia

Since its founding in 1990, Manhattan Associates has had a very strong presence in supply chain. Itserves several core markets but has its roots in retail and has a large global client base of Tier 1multichannel retailers for its Warehouse Management and Transportation Management solutions.More recently, in August 2014, Manhattan strengthened its multichannel and stores presencethrough its acquisition of Global Bay, whose main asset was a mobile POS solution. Employingaround 2,700 people, the company has several offices around the globe.

This research focuses on Manhattan's Omni POS solution.

POS Application: Omni POS.

Current Version (2Q16): POS/Clienteling v2016.

Programming Language/Environment: Java, HTML5, Apache Cordova, components.

PA-DSS Certified: Yes. Mobile POS application is out of scope, per the PCI Guideline; supportedby QSA letter.

Sweet Spot: The POS solution is implemented in Tier 2/midsize retailers, mainly in apparel.Example in the public domain: Speciaty Retailers — domestic (U.S.) and international.

Key Roadmap Item in the Next 12 Months: Vendor was unable to provide information.

NetSuite

www.netsuite.com

San Mateo, California

NetSuite was incorporated in 1998. With more than 4,600 employees, the company has a presencein several countries and in several industries, including retail. The vendor's cloud computingbusiness management software suites enable companies to manage core key business operationsin a single system, which includes enterprise resource planning (ERP), accounting, OM, CRM and e-commerce.

This research note looks at NetSuite's mobile-optimized POS, which is delivered through theSuiteCommerce single platform.


http://www.manh.com/

http://www.netsuite.com/portal/home.shtml

Note: On 28 July 2016, Oracle announced that it had entered into a definitive agreement to acquireNetSuite.

POS Application: NetSuite SuiteCommerce InStore.

Current Version (2Q16): 16.1.

Programming Language/Environment: Delivered via the web (Java back-end services) throughthin smart clients for iOS and Windows (Windows generally available 15 August 2016).

PA-DSS Certified: PCI certified as SaaS; not valid for PA-DSS.

Sweet Spot: The POS solution is currently implemented predominantly in fashion and apparel Tier2/midsize retailers. Examples in the public domain: Wingtip and Lovesac.

Key Roadmap Items in the Next 12 Months: Advanced OM fulfillment from store; seven additionalcountries.

Retail Pro International

www.retailpro.com

Folsom, California

Retail Pro has 100 employees and has been serving its substantial global retail client base since itsinception in 1987. The vendor offers two main solutions. Retail Pro 9 is a retail managementsoftware package designed for specialty retail. Retail Pro Prism is a POS solution that marries thecomprehensive features of Retail Pro 9 with a platform architecture approach.

This research focuses on the vendor's Retail Pro Prism POS solution.

POS Application: Retail Pro Prism, Retail Pro 9.

Current Version (2Q16): Retail Pro Prism 1.4, Retail Pro 9.3.

Programming Language/Environment: Retail Pro Prism is a multitiered web application utilizingan AngularJS/HTML5 front end served via an Apache web server and an Oracle or MySQL databasein a Windows environment. The application server is written in Delphi.

PA-DSS Certified: Retail Pro Prism platform, as well as the other current suite of Retail Proproducts, follow a methodology of only integrating to point-to-point encryption (P2PE) paymentapplications. Additionally, the Retail Pro applications do not interact directly with any sensitivepayment details from a consumer's method of payments. There is never any visibility in the RetailPro application to the consumer's payment data. Through both of the measures, the Retail ProPrism application is, for all intents and purpose, an "out-of-scope" POS application. Previous RetailPro applications have been validated and certified by the PCI-DSS requirements for PA-DSS andare listed on the PCI Security Standards Council website with a validation date of June 2014.


http://www.retailpro.com/include/cn/

https://www.pcisecuritystandards.org/

Sweet Spot: The POS solution is implemented in Tier 2 and Tier 3 retailers in categories such asapparel, footwear and sporting goods and is ideally suited for specialty retailers. Examples in thepublic domain: Oakley, Aesop, Diesel, G-Star Raw, Under Armour, Folli Follie, Mothercare,Samsonite, Pepe Jeans, San Francisco Giants (Major League Baseball), Muji, Al Futtaim, adidas,L.K. Bennett, La Perla, Burton, Frye, Stuart Weitzman, Benefit, Aramark, Celine, Sonia Rykiel, MarcJacobs, L'Oréal, Joe's, Puma.

Key Roadmap Items in the Next 12 Months: Full back-office management; expanded CRMfunctionality; direct ERP integrations; store-to-store alerts and messaging.

Starmount

www.starmount.com

Austin, Texas

Starmount, incorporated in 2006, has 140 employees and currently operates predominantly in NorthAmerica. Its founders have a very well established and solid pedigree in retail, primarily through itsconnection with the 360 Commerce Point of Sale solution, which was one of Oracle's strategicacquisitions in 2006.

Starmount's initial entry into the retail market was through its mobile POS solution. Over the pastfew years, the vendor has evolved the mobile POS solution into the much broader StarmountCustomer Engagement Suite. The suite comprises four products on an integrated platform that actas the backbone for multichannel commerce: Starmount Engage; Starmount Connect; StarmountStore Inventory; and Starmount Back Office.

This Market Guide looks at the vendor's POS solution, which is part of the Starmount Engageproduct.

Note: On July 11, 2016, Infor announced that it had entered into an agreement to acquireStarmount. The acquisition was completed in August 2016.

POS Application: Starmount Engage POS.

Current Version (2Q16): 5.X.

Programming Language/Environment: Native client deployment for iOS — Objective C, WindowsMobile — C#, server deployment — Java

PA-DSS Certified: Yes — 6/8/2016.

Sweet Spot: Currently the POS solution is predominantly implemented in Tier 2/midsize nonfoodretailers such as fashion and apparel. Examples in the public domain: Urban Outfitters, Zumiez andAbercrombie & Fitch.

Key Roadmap Items in the Next 12 Months: Multichannel store fulfillment — pick, pack, ship;multichannel — price and promotions management; cloud/SaaS store systems.


http://www.starmount.com/

Other vendors to consider that are not included in this market guide are CrossView, Enactor andMicrosoft.

Application Architecture

Table 3 illustrates that midsize solution providers have evolved their solutions to offer service-oriented architectures and centralized services for multichannel capability.


Table 3. Application Architecture

Key POS Application SolutionPlatform

Centralized Web Services

Implementation Aptos and MobilePOS on RetailStore

SingularCommerce

By eliminating disconnected, channel-specific systemsand siloed information, Aptos' Singular Commerceplatform leverages the "Power of One" to optimizeoperations. It enables retailers to see and manage:■ One customer: Consolidated, current, 360-

degree profiles and personalized, consistent andprofitable offers in every touchpoint thatmotivate purchases and reward loyalty.

■ One interaction: Integrated journeys where everyshopper is recognized, empowered andrewarded at every touchpoint.

■ One order: Enterprise inventory visibility fuelscentralized management of every order in everychannel.

■ One product: Integrated merchandising andplanning processes that bring retailers' uniquebrand vision to life in every channel.

■ One truth: Ensuring that every retail system issupported by validated, accurate, consistentand timely data from every corner of theenterprise.

■ One view of the enterprise: Role-based,actionable analytics that identify the right actionat the right time for strategic decisions.

Centralized web services include, but are not limited to:■ Customer management: Inquiry, edit, creation

and address validation.

■ Customer loyalty: Validation, participation,customer-specific trigger messaging, coupons,etc.

■ Enterprise return validation: Cross-channel orcross-store return validation and comprehensivetransaction details, ensuring accuratereturnability, pricing, promotions and taxation.

■ Omnichannel inventory visibility.

■ Order management and line item order status,alerting, escalation and processing.




■ Voucher management: Comprehensiveomnichannel gift card/stored value cardmanagement for issue, inquiry, reload andredemption.

Implementation CegidYourcegid RetailY2

Yourcegid RetailY2

Examples:■ Centralized web services from the app.

■ Two access methods: Private Legacy WS.

■ Published SOAP web services with WSDLcontract.

Main published APIs: Stock and inventory, customers,addresses, sales history, loyalty, sales documents(pending receipt, reservation and web orders) supportingomnichannel scenarios, returns and cash operations.Called through SOAP APIs: Sales conditions.

Implementation comerzziacomerzziaOmnichannelPoint-Of-Sale

comerzziaOmnichannelSuite for Retail

Comerzzia is an independent modular suite solutionusing a SOA/REST services-based architecture forenhanced multichannel capabilities.Examples:■ Synchronization services via RESTful through in-

store engine (i.e., store sync with main serverand third parties such as IoT devices).

■ Centralized promotion services multipurpose byany channel.

■ Centralized services for loyal customers, forexample: wish lists, last sales, customers'information, and promotions.

■ Clienteling, pricing service, pricing logic foritems, catalog management, basket persistence,workforce management, including laborscheduling, CRM, etc.

Examples of App Services:■ Notifications management.

■ Smart shopping cart: For food, customers canwrite their list in natural language, and comerzziawill return two processed and coded list — onebased on the customers' shopping history andthe other based on the least expensive products.

Implementation Demandware UnifiedCommerce

Demand Store




DemandwareStore and DigitalStore Solution

■ Product catalog, including product images,descriptions and recommendations.

■ Customer data.

■ Pricing, promotions and coupons.

■ Predictive intelligence.

Implementation ManhattanAssociatesOmni POS

Omni POS Point of sale is segmented into discrete services forflexible deployment so that cart processing, customerdata interaction, omniorder processing, returnsmanagement, consumption of wish lists andrecommendations can be deployed as needed.Actual POS devices operate with a light footprint tosupport UI presentation factors and device configurationso that business services can be managed efficiently.

Implementation NetSuiteSuiteCommerceInStore

SuiteCommerceSingle Platform

Order management item catalog with pricing, promotionsand inventory; single view of customer; all single platformwith e-commerce and ERP.

Implementation Retail ProRetail Pro Prism,Retail Pro 9

Retail Pro Prism,Retail Pro 9

The Retail Pro Prism web application communicates tothe Retail Pro Prism server using a REST API, whichprovides access to all the data and business logic thatmakes up Retail Pro Prism. Key areas like centralizedcustomer and returns management leverage thistechnology to allow remote locations/stores to validateagainst a server (of the retailer's choosing) for generalCRM data validation and/or consumer returntransactions.

Implementation StarmountStarmount EngagePOS

StarmountEngage

Examples: Pricing, promotions, tax, secure paymentservices, centralized transactions databases for reportingand returns, CRM, rich product data (images,descriptions, specifications, ratings and reviews, relatedproducts, etc.), chainwide store inventory look-up andavailable-to-promise, omnichannel order capture andmixed cart operations, endless aisle product look-up andordering.


POS Implementations in and Across the Channels

Figure 1 details a snapshot of implementations, including fixed POS, self-check-out, mobile, kiosksand other form factors. The centralization of POS, as illustrated by the various scenarios, is criticalto support a digital business model.


Figure 1. POS Implementations in and Across the Channels



Execution of Cross-Channel Customer Processes at POS

Figure 2 demonstrates that comprehensive cross-channel processes have become corefunctionality and critical to delivering a consistent customer experience. It also calls outmultichannel payment processing capability.


Figure 2. Functionality — Cross-Channel Customer Processes at POS

Source: Gartner (August 2016)Gartner, Inc. | G00302597 Page 19 of 35

Synthesis Between POS and OMS

Synthesis between POS and OMS is imperative to maximize efficiency of fulfilment and allow thecustomer to "buy anywhere, fulfill anywhere, return anywhere." This will include functionality to allowone view of the stock, endless aisle capabilities and centralized returns management.

Aptos: Retail Store

Aptos Order Management functions across all in-store and digital touchpoints, including completeintegration with Aptos POS, for a unified view of the online/offline intersection of commerce, orderbrokering, OM, order fulfillment, logistics and analytics — and everything in between.

Accurate, integrated and timely engagement ensures the head office, warehouse, stores andcustomers have direct access to real-time inventory information across the enterprise so that everypiece of inventory is available to every shopper, in every location.

Aptos Enterprise Order Management (EOM) suite consists of the following components:

■ Distributed Order Management: The heart of EOM that provides an interface for the capture oforders, configurable order processing, workflows, intelligent order routing algorithms across allfulfillment centers and inventory allocation logic.

■ Customer Service: A robust customer service tool designed for customer servicerepresentatives (CSRs) to both manage order modifications, appeasements and refunds andallow the capture of orders that occur via the phone.

■ Enterprise Inventory: The broker and trusted source of inventory data across the enterprise todetermine if product should be made available for sale — and if so, when and how it can befulfilled.

■ Store Fulfillment: Efficiently fulfill orders from the store inventory with pick, pack, ship andcarrier integration functionality.

Additionally, Aptos Enterprise Order Management provides the ability to integrate with external OMand fulfillment solutions to expedite implementations into heterogeneous landscapes. Aptos EOMprovides connectors to systems such as Manhattan, eBay, Fulfillment by Amazon, JVC, FSI,Archway and Capacity.

Cegid: Yourcegid Retail Y2

Yourcegid Retail Y2 natively integrates a centralized OM platform that enable customers to create,manage, fulfill and follow multichannel transactions. Yourcegid Retail enables customers to buy andcollect orders in a flexible manner, including click-and-collect, home delivery, store-to-store andstore-to-supplier transactions. Yourcegid Retail also allows online purchases to be returned to store.Real-time information flows in multiple ways: store to web and web to store (i.e., stock in real time,sales rep alert in-store), store to store, etc.


comerzzia: Omnichannel Point-Of-Sale

The full-edition solution includes supplier inventory and replenishment. Additionally, it hascapabilities for integration with OMS and ERP using SOA/REST services.

Comerzzia has built its own multichannel OMS, integrated with comerzzia POS application and alsointegrated with Hybris (SAP Integration Certification, Service Number 8581 for certification).

The following are some of the examples of multichannel OMS integrated with comerzzia POSapplication.

■ Comerzzia supports the capability to manage different types of services from each store (POSand e-commerce) such as click and collect, ship from store and collect from store, ensuring allcross-channel processes, stock visibility and inventory persistence.

■ Comerzzia can manage customer preferences related to product substitution, preferredlocations and delivery calendar service.

■ Each POS (located in logistic center, dark store or a specific store) has the capability to pickand/or deliver any order or any service that will be assigned to it via an alert notification system.

Other OMS capabilities:

■ Online store access embedded in the POS to complete the customer order with complementaryproducts even if the product is not in the normal assortment of the store. Payment can be in thestore or after delivery.

■ Return capabilities across channels.

■ Coupons and other benefits given and redeemed across channels.

Demandware: Demandware Store

Demandware Store includes centralized web services to synchronize OM with POS, including:

■ Product catalog, including product images, descriptions and recommendations

■ Customer data

■ Pricing, promotions and coupons

■ Predictive intelligence

Manhattan Associates: Omni POS

POS and OM are one platform, built as a set of integrated services, including: split-cart transactionand payment with proper accounting, ship to home, ship to another store, ship to same store, pickup at same store, pick up at another store, preorder items at store, sell value-added services withmerchandise and include in orders, look up transaction history across all channels, return orexchange products from transaction history, use existing wish list from e-commerce/other (RESTful


services), use existing customer preferences (RESTful services), and consume and use digitalassets in selling screens.

NetSuite: NetSuite SuiteCommerce InStore

NetSuite's SuiteCommerce InStore and Advanced Order Management solutions are part ofNetSuite's unified, cloud-based commerce platform, which also includes e-commerce, CRM, ERPand inventory management capabilities. With a unified platform, a single, consistent source ofcustomer, order and inventory data is created and available to ensure seamless cross-channelbrand experiences.

In addition to performing traditional POS transactions, SuiteCommerce InStore capabilities includebuy online, pick up in store (BOPIS), fulfill from store, return any transaction from and to any channelor location, single real-time view of enterprisewide inventory, single real-time view of enterprisewideorders and transactions, and ability to order inventory from any available source. Advanced OrderManagement provides a centralized OM solution with intelligent order allocation so merchants canautomate how to best fulfill orders based on their global inventory availability (warehouses, stores,third-party logistics [3PLs]) and business rules.

Retail Pro: Retail Pro Prism

Retail Pro Prism provides an in-system set of functionality for OM, which provides full capability toretailers to analyze and maintain replenishment needs for and across their stores. Additionally RetailPro Prism has a robust API that allows integration to nearly any external OM solution.

Starmount: Starmount Engage POS

The Starmount solution was developed to include a retail-specific integration platform to supportmultichannel commerce. It was designed to reduce the complexity and effort needed to design anddevelop common retail services, saving the retailer time and expense by providing prebuilt adaptorsto common retail systems and out-of-the-box multichannel commerce service providers like IBMSterling Commerce, Manhattan Associates Distributed Order Management (DOM), SAP Hybris, andSalesWarp Order Management solutions.

Converging Capabilities

Figure 3 illustrates the must-have "digital business ready" POS requirements through theconvergence of cloud, mobile, social and IoT technologies.


Figure 3. Converging Capabilities



Data and Analytic Capabilities

Table 4 illustrates the data and analytic capabilities offered by each solution, including examples ofout-of-the box reporting and dashboards.


Table 4. Data and Analytics Capabilities

Key POSApplications

Reporting and Analytics Capabilities

Implemented Aptos In addition to native dashboard and store-based reporting native to the Aptos Storeapplication, Aptos provides industry-leading retail analytics capabilities.Aptos Retail Analytics (formerly known as QuantiSense) combines data warehousingand sophisticated retail big data analytics into role-based, actionable and repeatableprocesses that leverage data richly and efficiently, giving teams more time to thinkstrategically, take action and run the business.Users anywhere, from corporate to field managers to store staff, can benefit fromthe power of Aptos Analytics, delivered via browser, intranet or seamlessly withinAptos Store POS via the embedded browser framework. Stores can easily view howthey compare across their district and enterprisewide in modern KPI-drivendashboards such as store sales overview, store product dashboard, employeeperformance and productivity dashboard, market basket and store playbook. NewKPIs, queries, reports and dashboards can be easily created to meet the ever-changing needs of the retailer.

Implemented Cegid Embedded reports and cubes within the Y2 solution. As part of the connected retailportfolio, Cegid has a complete retail intelligence suite built on Microsoft BI and Qliktechnologies, providing a datamart, preconfigured cubes and reports, andinteractive web/mobile dashboards.

Implemented comerzzia Visual and intuitive dashboard with reporting and analytics capabilities in InvolveCRM Module; some examples as follows:■ Sales analytics per hour.

■ Category and products' contribution to the retailer's sales.

■ Price sensibility analytics.

■ Sales heat map.

■ Sales evolution and sales prediction.

■ Top customers' shopping frequency and average expenditure.

■ Shopping cart distribution.

■ Customers that are likely to abandon.

■ Geographic analysis per sales volume and average order value.

■ Customer segmentation and tickets segmentation. Segmentation isbased on customer buying habits and opinion and sentiment expressedin social media.

■ Shopping cart association. Analytics about how some products arepurchased with others.

Suggestions and recommendations in order to take different actions; someexamples are as follows:■ Proactive recommendation of products based on the customer's

shopping cart.


Key POSApplications

Reporting and Analytics Capabilities

■ Alerts about customer behavior change.

■ Collective tracking for promotions launching.

■ Alerts from the POS based on customer social monitoring.

■ Products that should be bundled for cross-selling or upsellingpromotions.

Implemented Demandware Demandware Store: Real-time in-store KPI dashboard out-of-box and customoptions.Demandware Store: Real-time back-office reports out-of-box and custom options.

In pilot ManhattanAssociates

The POS application ships with standard store dashboard for comparative salesperformance, but also allows these to be added to and customized with supplychain intelligence tool.

Implemented NetSuite Full standard NetSuite dashboards. Ability to expose any data to POS throughstandard NetSuite saved search functionality (easy-to-use end-user tool foranalyzing and displaying data from NetSuite).

Implemented Retail Pro Retail Pro provides a robust reporting and analytics package that offers specificinsight to the KPIs that mean the most to the retailer to ensure they have up-to-theminute details for informed decisions to manage the business effectively.

Implemented Starmount Starmount provides a set of out-of-the-box reports and analytics tools that allowretail managers to manage store operations, including:■ Flash sales

■ Department sales

■ Associate sales

■ Hourly sales

■ Summary reports

■ Transaction search

■ Customer sales history

■ Product search patterns

■ Inventory management reports


Hardware and Software Bundle Options

Table 5 illustrates whether the vendor offers the software-bundled hardware or has an establishedpartnership for hardware needs.


Table 5. Hardware and Software Bundle Options

POS Solutions Bundled Hardware HW Type

Aptos Yes Aptos is a top 10 reseller of HP Inc., Toshiba, Epson,Verifone and Zebra solutions. Additionally, Aptosprovides an Aptos-branded hardware solution as well.

Cegid No; leveraged partnerships Partner with leading local and international hardwaresuppliers, including Apple, Toshiba, HP Inc. andAures.

comerzzia Toshiba, Motorola, IBM, Epson,NCR, Ingenico, Wincor Nixdorf,Intermec, Datalogic. Apple,Gunnebo, Pricer, Motorola, Dibal,Bizerba, SoftBank Robotics, Sato,Toshiba

Cash and credit autopay, mobile devices, electronicshelf labels, price checker, scales, robotics (theintelligence hosted in the robot is comerzzia), ips andbeacons, RFID and facial recognition.

Demandware No N/A

ManhattanAssociates

No N/A

NetSuite No N/A

Retail Pro N/A N/A

Starmount Starmount does not bundlehardware, but partners with severalhardware providers, including HPInc.


Vendor Support Locations

Evaluating the trustworthiness of a vendor is critical to selection of a digital business ecosystempartner and includes evaluation of the support and services a vendor can offer.

Figure 4 summarizes vendors' coverage in terms of their locations for support services.


Figure 4. Vendor Support Locations


Vendor Implementations in Geographies and Segments

Figures 5, 6, 7 and 8 provide a summary snapshot of vendor coverage in terms of the geographiesand retail segments in which the vendors have production implementations of their POS applicationsolutions.


Figure 5. Vendor Implementations in Geographies and Segments — Aptos and Cegid



Figure 6. Vendor Implementations in Geographies and Segments — comerzzia and Demandware



Figure 7. Vendor Implementations in Geographies and Segments — Manhattan Associates and NetSuite



Figure 8. Vendor Implementations in Geographies and Segments — Retail Pro and Starmount



Bottom Line:

Midsize multichannel retailers can use this Market Guide to understand the current state of digitalbusiness readiness of POS solutions in the marketplace, which can include convenient capabilitieslike inventory management, data and analytics, clienteling or CRM. These capabilities will positionretailers to meet consumer expectations today and in the future.

Market Recommendations■ Evaluate the application architecture of the POS solutions in this Market Guide; look for

centralized services on a unified commerce platform to deliver multichannel capability, includingstrong in-store capability.

■ If the POS has an e-commerce or m-commerce heritage, check that it has been or can beextended to accommodate in-store requirements. For example, does it have the capabilityto integrate with in-store peripherals, device drivers and interfaces to comply with country-specific requirements relating to physical fiscal POS printers.

■ Conduct comprehensive process mapping to identify all the interaction points between POSand OM in order to maximize efficiency of fulfillment. For example, POS must be able to accessthe tracking of order payment status, regardless of the point of origin of the orders.

■ Deploy POS on mobile devices to include both transactional services and services to supportcustomer engagement. Identify how best to leverage POS on mobile devices, bearing in mindthe need to balance engagement, for example, in nonfood categories such as consumerelectronics or apparel, with the level of transaction throughput required for high-volume grocerycategories.

■ Facilitate a workshop with the relevant business leaders to gather the "must-have" digital-business-ready POS requirements for the convergence of cloud, mobile, social and IoT, takinginto account the availability of full-service POS capability on a mobile device. This must be partof the digital business transformation roadmap.

■ When selecting POS, guide the team to evaluate the trustworthiness of the vendor usingmeasures such as their approach to security, their willingness to collaborate, the support andservices they offer, their compatibility with your business culture, and their dependability andreputation in the marketplace.

Gartner Recommended ReadingSome documents may not be available as part of your current Gartner subscription.

"Predicts 2016: Digital Business Uproots Traditional Retail Revenue Generation"

"Transforming to a Customer-Led Digital Business in Retail Primer for 2016"


"Survey Analysis: Early Adopters of Internet of Things Poised to Make 2016 the Year of theCustomer"

"Business Moment: Reconstructing the Retail Consumer Experience"

"Market Guide for Digital-Business-Ready POS Applications for Tier 1 Multichannel Retailers"

"Forecast: Small-and-Midsize-Business IT Spending, Worldwide, 2014-2020, 2Q16 Update"


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